The share of household income spent on rent in Riyadh has fallen to about 15%, from more than 17.5% in September 2025, according to Abdullah Al-Hammad, chief executive of Saudi Arabia’s Real Estate General Authority (REGA), Saudi Gazette reported.
Speaking at the Legal Aspects of Governance Conference at King Saud University, Al-Hammad described the decline as one of the tangible results recorded since measures were introduced to balance Riyadh’s property market. He said the most financially vulnerable households had previously been spending more than 30% of their income on rent. He added that directives from Crown Prince and Prime Minister Mohammed bin Salman included continuously monitoring real estate indicators and submitting periodic reports on results and challenges.
The measures in Riyadh include a five-year freeze on annual rent increases for existing and new residential and commercial lease contracts within the capital’s urban boundary. For vacant residential and commercial properties that have previously been leased, total rent is fixed at the amount in the property’s most recent contract registered on the Ejar platform; for properties that have never been rented, rent is set by agreement between landlord and tenant.
The rules also lengthen the notice a landlord must give when not renewing a standard residential lease because the property will be used personally or by a first-degree relative. Tenants must receive at least 365 days’ notice before the lease expires; if notice is given later, the lease is extended until a full year has passed from the date the tenant was notified.
References
Saudi Gazette – Riyadh rent burden falls to 15% of household income: REGA CEO
